Indian equity markets have been under pressure amid the ongoing geopolitical conflict in the Middle East that has led to rising crude oil prices and persistent foreign investor outflows. However, veteran market voice Sandeep Tandon believes the current sell-off could be setting the stage for a significant long-term opportunity.
According to Tandon, the correction should be viewed as part of a broader market cycle rather than a structural deterioration in India's growth story.
“The cycle that peaked in July 2024 could be bottoming out around March 2026,” he said, adding that the market is beginning to show signs of “capitulation and exhaustion”, a phase that often marks the final stage of a correction.
The ongoing conflict has created uncertainty across global markets, particularly because of concerns over crude oil supply disruptions. For India, which depends heavily on imported energy, elevated oil prices can create short-term pressure on markets.
However, Tandon believes the broader geopolitical shift could ultimately be constructive for India.
Tandon pointed out that the sharp sell-off currently being witnessed reflects a “capitulative move” in markets, where panic selling dominates investor behaviour.
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Historically, such phases often appear close to market bottoms.
“Every crisis brings an opportunity,” he said, suggesting that investors should use the current volatility to rebalance portfolios rather than react emotionally to falling prices.
How Investors Should Interpret The Market
In the current environment, Tandon believes investors should adopt a disciplined and data-driven approach.
Portfolio rebalancing is key, he said, advising investors to identify stocks with strong return potential and move away from segments that could correct further, regardless of the price at which those stocks were originally bought.
Investors should avoid emotional bias linked to losses and focus instead on long-term return potential.
He also cautioned against high price-to-earnings multiple stocks, suggesting that exposure to such segments should be reduced during corrections.
At the same time, periods when investor conviction is at its lowest often turn out to be the best entry points for equities.
Sectors That Look Promising
Telecom, insurance, asset management companies and pharmaceutical stocks remain areas where he sees stronger potential.
These segments have held up better during the recent volatility and continue to benefit from structural growth trends within the Indian economy.
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